question

Which level of strategy provides direction on the company's mission, the kinds of businesses it should be in, and its growth policies?

answer

Corporate strategy

question

What component of strategy involves detailing the desired levels of accomplishment on one or more performance dimensions over specified time periods for the organization as a whole?

answer

Goals and objectives of an organization

question

What question needs to be specifically addressed while developing a business strategy?

answer

What distinctive competencies can give the business unit a competitive advantage?

question

What is primary focus of marketing strategy?

answer

Effective allocation and coordination of resources to meet organizational objectives within a specific product-market

question

Why are early entrants into newly emerging industries, particularly industries based on new technologies, especially likely to be internally focused and not very market-oriented?

answer

Rapid growth in demand for the new product

question

The tendency for firms to automatically continue strategies that were successful in the past, even though current market conditions are changing, is referred to as

answer

Strategic inertia

question

Which of the following approaches characterize a production-oriented organization?

answer

Primary focus on functional performance and cost

question

Matrix Computer Inc.'s focus on large organizational customers caused the company to devote too little effort to the fast growing segment of small technology start-ups. This example illustrates that the firm

answer

Was prone to strategic inertia

question

Dell attempted to maintain its long-standing low-cost position by reducing the number of technicians in its customer call centers. As a result, increasing number of customers spent 30 minutes or more on hold before they found a technician to solve their problem. This affected Dell's customer satisfaction rating in the United States and its sales and profit growth stagnated. This scenario highlights

answer

The increased importance of service

question

A distinct subset of people with similar needs, circumstances, and characteristics that lead them to respond in a similar way to a particular product or service offering is known as a

answer

Market segment

question

Which of the following is considered an important tool for communicating and coordinating expectations and responsibilities throughout the firm?

answer

Written marketing plan

question

Which of the following statements is consistent with the marketing orientation?

answer

Pricing is based on perceived benefits the product provides

question

What is not true of the criteria for defining a corporate mission?

answer

Basic customer needs tend to change over time, but products endure

question

The most useful mission statements focus on being

answer

Functional and specific

question

What is the expansion for the acronym SMART used in specifying corporate objectives?

answer

Specific, Measurable, Attainable, Relevant, and Time-bound

question

The profitability criterion is measured in terms of which of the following indexes?

answer

Return on net assets

question

In expressing corporate objectives aimed at enhancing shareholder value, a firm combining its debt and market value of its stock, and then subtracting the capital invested in the company, is using the _____ approach

answer

Economic value added

question

A survey on customer feedback for an auto dealer company found that about 75 percent of customers' satisfaction scores were accounted for order processing, delivery, and post-sale services. This finding substantiates which of the following statements?

answer

Customer satisfaction is influenced by factors other than the product itself

question

A company trying to increase its market share for its current products is most likely to follow which of the following strategies?

answer

Market penetration

question

Amazon.com pursued a combination of actions such as making service improvements, cutting costs as well as forming alliances with Web portals to expand its share of Web shoppers, even though the expense of such activities postponed the firm's ability to become profitable. This is an example of expansion by

answer

Increasing market penetration of current product

question

Stepan Co. successfully introduced detergents for washing clothes, dishes, and carpets. Each detergent capitalized on the image of baking soda as an effective deodorizer and on the high level of recognition of the Stepan Co. brand. This example illustrates the use of a

answer

Product development strategy

question

Theaters, orchestras, and other performing arts organizations often reach audiences outside major metropolitan areas by promoting matinee performances with lower prices and free public transportation to attract senior citizens and students. Identify the strategy being employed in this case

answer

Expansion by selling existing products to new segments

question

A manufacturer is moving downstream in terms of product flow by launching a chain of retail outlets. Which diversification strategy is being used by the company?

answer

Forward vertical integration

question

Faced with a decline in its current business, a generic drug manufacturer is planning a foray into design, and manufacture of re-locatable modular structures. Which diversification strategy is being employed by the company?

answer

Unrelated diversification

question

Which of the following is a limitation of the growth-share matrix?

answer

Outcomes of this analysis are highly sensitive to variations in how growth and share are measured

question

Cash cows are

answer

Businesses with a high relative share of low-growth markets

question

Which of the following is part of using customer equity to estimate the value of alternative marketing actions?

answer

Calculating the lifetime values of each of its customers

question

The following performance measures: market share, brand awareness and brand preference are all measures of which of the following performance criteria.

answer

Competitive strength

question

What term is used to refer to the size of current users who are already using a particular product at the time of forecast?

answer

Penetrated market

question

Which of the following statements is true of the top-down approach in sales forecasting?

answer

A central person or persons take the responsibility to prepare an overall forecast

question

Statistical methods are not recommended for new product managers charged with forecasting sales for a new product because

answer

There is no history in their venture on which to base a statistical forecast

question

Company A is a tire manufacturer and uses factors like the number and age of vehicles currently on the road in the country, predictions of GDP for the region, and other relevant factors to forecast market potential. Which of the following methods is the method Company A uses for a more accurate forecast?

answer

Statistical method

question

For which category of new products is the observational method of preparing an evidence-based forecast not possible?

answer

New-to-the-world products

question

Honeydew, a well-known confectionery, plans to introduce a walnut fudge candy. It asks some of its regular customers to sample it and provide their opinion. In this way, the management hopes to estimate the likely number of buyers for the product, if introduced in their store. Honeydew used the _____ method of forecasting.

answer

Survey

question

Which of the following is not a valid reason for the decline in the use of live test markets?

answer

Differences exist between what people imagine about a product in a test market and what is actually delivered

question

Diffusion of innovation theory allows

answer

Marketers to estimate how rapidly an innovation is likely to be adopted by the target market

question

The speed of the adoption process is based upon the all of the following except

answer

Extent to which its trial can be accomplished on a large-scale basis

question

Arguably, in terms of value, the least important group in the diffusion of innovations curve is:

answer

Laggards

question

Brendin Co. is a retail chain specializing in business and casual wear for working women. Each week, all Brendin retail outlets receive sales information about their garments in terms of style and color; merchandise category (e.g., dress or casual); store, area, or region; and for various time periods. This is an example of the use of

answer

Internal records systems

question

Company A uses loyalty cards to track and analyze customer buying patterns and to offer customers coupons and incentives tailored to their buying behavior. Which of the market knowledge systems does the company use?

answer

Marketing databases

question

What system of information collection best illustrates a marketing database?

answer

"Cookies" or electronic signatures placed at a customer's personal computer

question

Which of the following statements about competitive intelligence systems is incorrect?

answer

It allows the effective capture of customer intelligence from salespeople and account transfers

question

Salesforce automation software helps companies to

answer

Disseminate real-time product information to salespeople to satisfy customer needs

question

The design, collection, analysis, and reporting of research intended to gather data pertinent to a particular marketing challenge or situation is referred to as

answer

Marketing research

question

"Primary data collected when cheaper and faster secondary data will do. Quantitative data collected without first collecting qualitative data." These are examples of things that could go wrong in which step of the marketing research process?

answer

Determining data sources and types of data and research approaches required

question

In forecasting the Customer Lifetime Value of a customer which of the following is least important:

answer

The nature of the products purchased

question

Identify the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that led them to respond in similar ways to a particular product offering and marketing program.

answer

Market segmentation

question

Which of the following involves evaluating the firm's mission and capabilities to deliver what each segment wants, in order to choose which segments it will serve?

answer

Target marketing

question

If in a certain country, the population growth has slowed, and more product-markets are maturing the result is most likely to be one of

answer

Intense competition and increase in brand extensions

question

The competitive environment in some industries is witnessing developments such as build-to-order processes, mass-customization of products, and computer-aided design technology. What reason can be attributed to the rising importance of marketing segmentation in such an environment?

answer

An increasing trend toward microsegmentation exists in which extremely small market segments are targeted

question

Which of the following is not an objective entailed in the market segmentation process?

answer

Developing strategic alliances in the decline stage of the product

question

Which of the following statements emphasizes the impact of income in segmenting markets geographically?

answer

Nokia has launched a subsidiary to create an ultra-exclusive mobile telephone targeting customers buying prestige products

question

"Gatorade's" original target market consisted of athletes who needed to replenish water and salts lost through perspiration. "Specialized" and "Gary Fisher" target bicyclists who wish to ride on single-track trails or back-country terrain. Which type of segmentation do these examples highlight?

answer

Behavioral

question

Which of the following illustrations exemplifies behavioral segmentation?

answer

Over the years, Volvo has emphasized safety whereas Jaguar has emphasized styling, quickness, and status

question

Consumers evaluate product or brand alternative on the basis of desired characteristics and how valuable each characteristic is. This is referred to as the

answer

Choice criteria of the consumer

question

Principle-oriented consumers are consumers who

answer

Are motivated by abstract and idealized criteria for products or services

question

All of the following are benefits managers gain from applying a common analytical framework across segments to evaluate the potential of alternative market segments except

answer

To portray how different segments represent equally attractive opportunities

question

Which of the following marketing questions underlines the market-attractiveness of a firm?

answer

Are there unmet or underserved needs we can satisfy?

question

Possible shifts in customer needs and behavior, the entry or exit of competitors, and changes in their strategies are considered during this step of constructing a market-attractiveness/competitive-position matrix for evaluating potential target markets.

answer

Project future position for each segment

question

The text notes that over 20% of US consumers are functionally illiterate and word based promotional techniques like signage and packaging are ineffective in reaching them. Which techniques hold promise for effective marketing to this group?

answer

Use of pictorial information alongside word information and employee training to help consumers avoid embarrassment (A and B)

question

Elements such as the threat of new entrants, threat of substitutes, buyer power, competitive rivalry pertain to which factor?

answer

Industry attractiveness

question

Brand positioning refers to both the place a brand occupies in customers' minds relative to the competition; and

answer

The marketer's decision making intended to create that position

question

Identify a limitation of physical positioning.

answer

Customers' attitudes toward a product are often based on social or psychological attributes

question

A Sri Lankan tea producer is positioning its teas in the same way that wine has been positioned for years. What does this positioning strategy signify?

answer

Consumers often evaluate goods and services on factors other than physical properties, including their past experiences

question

Which of the following examples best illustrates perceptual positioning?

answer

Colgate's toothpaste with enhanced freshness of breath and sparkly teeth

question

Marketing decision makers, while seeking to win a particular position in a customer's mind, endow their product with various kinds of attributes. The speed of a computer system, the roominess of a car, and a product's or service's being user-friendly are examples of which type of categorization based on such attributes?

answer

Complex physically based attributes

question

A firm is considering introducing a new product category in a highly competitive environment. The marketers obtain customer perceptions of the new product concept relative to likely alternatives on various determinant attributes the new product may contain. Based on this, infer what step of the positioning process is the firm at?

answer

Identifying relevant set of competitive products serving a target market

question

Volvo's emphasis on safety, Toyota's emphasis on reliability, and Norelco's promising a "close and comfortable shave" highlights which determinant attribute?

answer

Benefits

question

This is an example of using product features as a determinant attribute in positioning.

answer

"This is the quietest dishwasher made in America."

question

A bank positions itself using its deposit safety attribute. Why would this positioning not create an impact in the consumer's mind?

answer

Because all the alternative brands are perceived to be about equal on that dimension

question

Identify the incorrect statement concerning the positioning grid.

answer

It indicates how products within a category compare on the level of as many attributes as are relevant

question

"British Leyland was formed through a series of mergers involving a number of British car manufacturers. It did not have a clear identity because it was new and manufactured a variety of brands, including Rover, Triumph, and Austin-Morris." Which constraint associated with an intense position does this example illustrate?

answer

The dilution of an existing intense position as a result of consolidation

question

Customers are surveyed and asked their preferences among various real or hypothetical product configurations, each with attributes that are systematically varied. This is an example of

answer

Conjoint analysis

question

Identify the limitation of product positioning analysis.

answer

It does not tell the marketer which positions are most appealing to customers

question

Brand equity can be described as:

answer

How consumers feel, think, and act toward the brand, the result of brand differences that consumers find meaningful, and the foundation for the prices and profits the brand can achieve (all of the above)

question

Objective measures, technical orientation and physical brand properties are associated with:

answer

Physical positioning

question

Which of the following observations about pioneering firms is incorrect?

answer

They are always the market share leaders as the new product categories mature

question

_____ is designed to obtain as much margin per unit as possible and also enables the company to recover its new product investments more quickly.

answer

Skimming

question

What is true of the introductory stage in a product life cycle?

answer

The length of the product line typically should be relatively short

question

The shakeout stage in a product life cycle is signaled by

answer

A drop in the overall growth rate and substantial price cuts

question

New-to-the-world products can be defined as

answer

True innovations that are new to the firm and create an entirely new market

question

These items may be moderately new to both the firm and the customers in its established product-markets.

answer

Additions to existing product lines

question

Which observation best describes new-to-the-world products?

answer

They try to build primary demand by creating product awareness

question

To establish a foothold in a future new market, or preempt a market segment, a firm must introduce

answer

New-to-the-world products; additions to existing product line; repositionings

question

Improving or revising existing products, additions to existing product lines and cost reductions aim at achieving which of the following objectives?

answer

Defending a current market-share position

question

The pioneer's brand can become the standard of reference customers use to evaluate other brands, making it more difficult for followers to convince existing customers that their new brands are superior to the older and more familiar pioneer. Which advantage of being a pioneer does this explain?

answer

First choice of market segments and positions

question

Apple's iPhone's sleek design, innovative software, and functionality enabled Apple to capture a substantial share of the global mobile phone market from competitors like Nokia, Motorola, and Samsung. This example illustrates Apple's ability to take advantage of the pioneers'

answer

Product mistakes

question

Pioneers that are able to maintain their preeminent position well into the market's growth stage have supported their early entry with one or more marketing strategy elements. Identify the strategy that allows firms to expand their volumes quickly and achieve the benefits of experience-curve effects before major competitors can confront them.

answer

Large entry scale

question

Which of the following elements belongs to the successful late entrants' market strategy?

answer

Focusing on peripheral target markets or niches

question

Identify the firm characteristic of mass-market penetration for new product pioneers.

answer

Ability to shift from stimulation of primary demand to stimulation of selective demand

question

All of the following are true of firms adopting the niche penetration marketing strategy except

answer

It is appropriate when the product category is likely to experience positive network effects

question

Which of the following marketing programs is used by the niche penetration strategy to increase the customers' ability to buy?

answer

Starting with high price but bringing out lower-priced versions in anticipation of competitive entries

question

In the Introduction stage of the Product Life Cycle, firms should focus on all but which of the following?

answer

Improve product quality

question

All of the following are reasons why followers are attracted to rapidly growing markets except

answer

The share gains are seldom worth more in a growth market than in a mature market

question

Sony was the pioneer and early share leader in the videocassette recorder industry with its Betamax technology. But Matsushita's longer-playing and lower-priced VHS format equipment proved much more popular with consumers, and dethroned Sony as industry leader. This example underlines that

answer

Firms cannot always rely on their competencies to maintain share leadership in a market

question

This is a marketing objective for share leaders.

answer

Retain existing customers and ensure brand loyalty

question

Identify a market leader's action aimed at stimulating selective demand among later adopters.

answer

Differentiated positioning against competitive offerings

question

The marketing action of developing a product line with features that are more appealing to a specific segment of potential customers is characteristic of the

answer

Flanker strategy

question

Firms can implement any combination of the given strategies to maintain its leading share position. Firms can choose the preferred combination for a particular product-market of based on all of the following except

answer

The leader's organizational history and culture

question

What action step must a leader take to improve customer satisfaction as competition enters, or prepares to enter the market?

answer

Leader should take steps to improve not only the physical product but customers' perceptions of it as well

question

Toyota Motors has introduced a new line of cars aimed at creating an appeal for young car buyers looking for good quality, funky designs, and low-prices. Their intent is to protect their primary brands from direct competition in the same category and from low-price competitors. What is the strategy employed by Toyota?

answer

Flanker strategy

question

A firm develops line extensions, new brands, or alternative product forms utilizing similar technologies to appeal to multiple market segments. Identify the strategy employed here.

answer

Market expansion strategy

question

Strategic withdrawal strategy is best suited when

answer

A firm is unable to defend itself adequately in all segments due to competitors having more resources

question

Attacking the leader within its primary target market involves which of the following strategies?

answer

Frontal attack strategy

question

Share leaders have an enviable position but must defend their shares against competition. Which of the following marketing objectives are important for firms with the largest market share?

answer

Retaining current customers, stimulate demand among later adopters, and stimulate primary demand to grow the market (all of the above)

question

Strategies for Mature and Declining Markets

answer

Total sales volume stabilizes

question

What is true of the transition from market growth to maturity?

answer

Often accompanied by a shakeout, during which weaker businesses fail

question

"A business may survive and prosper during the growth stage even though it has neither differentiated its offering from competitors nor attained the lowest-cost position in its industry, but not so in the transition period." This is true of which strategic trap?

answer

Getting caught in the transition period without a clear strategic advantage

question

National Motors manufactures high-end automobiles. The attributes of their cars include excellent handling, acceleration, comfort and braking, providing the company an advantage over its competitors. Identify the product quality dimension of these cars.

answer

Performance

question

The quality dimension of _____ refers to a customer's ability to obtain prompt and competent service when the product does break down.

answer

Serviceability

question

This quality dimension refers to the absence of defects.

answer

Conformance to specifications

question

The gap between management perceptions and service quality specifications occurs when

answer

A firm's policies concerning customer service are unclear, or haphazardly enforced

question

In some labor-intensive industries, a business can achieve a cost advantage, at least in the short term, by gaining access to inexpensive labor. Identify the type of method used to obtain a sustainable cost advantage.

answer

Innovative production processes

question

The production of no frills goods to maintain a low-cost position

answer

Involves removing all extras from the basic product or service

question

Papyrus Inc. achieved a cost advantage by being the first major papermaker to rely exclusively on recycled pulp. The firm's lower cost gave it a competitive edge in the price-sensitive commercial market for toilet paper and other such products used in hotels, restaurants, and office buildings. Which method of maintaining a low-cost position has the company used?

answer

Cheaper raw materials

question

Identify the market characteristic that affirms growth extension in maturing markets through application of an extended use strategy.

answer

Relatively high penetration but low frequency of use in one or more major segments

question

To develop differentiated positioning focused on untapped segments using a market expansion strategy, a firm should

answer

Develop a differentiated flanker brand with more appealing unique features

question

A successful increased penetration strategy depends on discovering why nonusers are uninterested in the product. Often, consumers do not perceive enough value in the product. Which of the following is not a suitable solution to enhance product value?

answer

Develop more convenient and accessible channels of distribution

question

In a mature market, a market expansion strategy may work. To be successful it depends on a number of factors. Which of the following is not a useful factor in such a market expansion strategy?

answer

Rely on price cutting to build volume

question

Conditions of demand, factors that help determine the strategic attractiveness of declining product-markets, include demand characteristics such as the rate and the certainty of sales decline. What observation is true of the market conditions being affected by these characteristics?

answer

A slow and gradual decline allows an orderly withdrawal of weaker competitors

question

A harvesting strategy can be used in all the following situations except

answer

When rivalry among remaining competitors is likely to be very intense

question

In a mature market, what should a firm's customer priorities be?

answer

Hold on to existing customers

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